Chandigarh, Oct 10 (UNI) Punjab Chief Minister Parkash Singh Badal today called for an inbuilt mechanism for realisation of optimum recovery of tax deduction at source on contract works in the state.
Presiding over a high-level meeting of the senior functionaries of the state government, Mr Badal directed the Excise and Taxation department to plug all the loopholes in the tax recovery system to ensure strict compliance of VAT on the contract works allotted by the various departments of the government.
He also asked the all the departments to appoint a nodal officer to work in tandem with the Excise and Taxation Department to achieve the desired results.
Mr Badal agreed to the proposal of Excise and Taxation department in principle and directed the departments to only enlist those contractors who had TIN (Tax Identification Number) so that they could be tracked down by the department for the recovery of tax.
The Chief Minister also asked the Drawing and Disbursing Officers (DDOs) to have TDN (Tax Deduction Number) for the proper compliance of tax realisation in the VAT regime.
He said both TIN and TDN would help the enforcement wing of the Excise and Taxation Department in zeroing in on the defaulting tax payers which would ultimately help the department to improve its tax recovery system enormously.
He said these steps were expected to earn an additional revenue of Rs 500 to Rs 700 crore annually.